But I've heard it done live there more than once. What gives?

This just in! (Sept., '11)

Repealed!
"The new decision was based on what CBSC calls “considerable additional information” – such as learning that alternative versions of “Money For Nothing” have existed since 1985, proving “the band and the composer considered that there was a less offensive way of presenting the song to the public long ago” and the context in which the word is used demonstrates that “the composer’s language appears not to have had an iota of malevolent or insulting intention.”

You don't want to sound dumb, don't want to offend
So don't call me a faggot
Not unless you are a friend
Then if you're tall and handsome and strong
You can wear the uniform and I could play along.
[Joe Jackson, Real Men]

Stumbled across this gem searching for "dire straits" nautical folklore. Oh Canada!